Why do enterprises generate short-term loans when they have a large amount of monetary funds?

Short-term loans refer to all kinds of loans that enterprises borrow from banks, other financial institutions and other units to maintain normal production and operation or offset a certain debt, and the repayment period is within one year (including one year). Short-term loans mainly include operating revolving loans, temporary loans, settlement loans, bill discount loans, seller's credit, advance deposit loans and special reserve loans.

If the enterprise has a large amount of monetary funds, it will also generate short-term loans. It may be that the rate of return on assets is higher than the cost of borrowing, and it is using financial leverage to create more income.

Tips: The above information is for reference only.

Reply time: 202 1-03- 17. Please refer to the latest business changes announced by Ping An Bank in official website.

[I know Ping An Bank] Want to know more? Come and watch I Know Ping An Bank ~

/paim/iknow/index.html